Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A)If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.
• B)If you formed a portfolio that consisted of all stocks with betas less than 1.0, which is about half of all stocks, the portfolio would itself have a beta coefficient that is equal to the weighted average beta of the stocks in the portfolio, and that portfolio would have less risk than a portfolio that consisted of all stocks in the market.
• C)Market risk can be eliminated by forming a large portfolio, and if some Treasury bonds are held in the portfolio, the portfolio can be made to be completely riskless.
• D)A portfolio that consists of all stocks in the market would have a required return that is equal to the riskless rate.

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Definitions:

Informal Structures

Unofficial relationships and networks within an organization that influence decision-making, communication, and relationships.

Emotional Support

Assistance provided through empathy and concern, offering comfort and reassurance to individuals who are experiencing distress.

Supervisory Relationships

describes the dynamic and interaction between supervisors and their subordinates, focusing on guidance, support, and performance management.

Organization Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.